Better.com
{{Short description|American mortgage origination firm}}
{{use mdy dates|date=December 2021}}
{{Infobox company
| name = Better Home & Finance Holding Company
| logo = Better wordmark 2022.svg
| logo_size =
| type = Public
| traded_as = {{NASDAQ|BETR}}
| industry = Financial services
| founded = {{Start date and age|2014|02|24}}
| founder = Vishal Garg
| hq_location = 3 World Trade Center, New York City, US
| key_people = {{ubl|Vishal Garg (CEO)|Paula Tuffin (CCO)|Kevin Ryan (CFO)}}
| services = Broker for mortgage origination, title insurance, and home insurance
| revenue = {{decrease}} $76 million (2023)
| net_income = {{increase}} -$536 million (2023)
| assets = {{decrease}} $905 million (2023)
| equity = {{increase}} $122 million (2023)
| owner = {{nowrap|Vishal Garg (95 million shares)
Activant Capital Group (61 million shares)
SoftBank Vision Fund (55 million shares)
Pine Brook Capital (49 million shares)
Novator Partners (48 million shares)
Ontario Pension Plan (29 million shares)
Riaz Valani (27 million shares)
L Catterton (23 million shares)}}
| website = {{URL|https://better.com/}}
| footnotes = {{Cite news | url=https://www.sec.gov/Archives/edgar/data/1835856/000162828024017132/definitiveproxystatement.htm | title=DEF 14A: Other definitive proxy statements | publisher=U.S. Securities and Exchange Commission | date=April 22, 2024}}{{Cite web | url=https://www.sec.gov/ix?doc=/Archives/edgar/data/1835856/000162828024015134/aurcu-20231231.htm | title=Better Home & Finance Holding Company 2023 Form 10-K Annual Report | publisher=U.S. Securities and Exchange Commission | date=April 8, 2024}}{{Cite web | url=https://icis.corp.delaware.gov/ecorp/entitysearch/NameSearch.aspx | title=Department of State: Division of Corporations | work=Delaware}}
}}
Better Home & Finance Holding Company doing business as Better or Better.com, headquartered in New York City, provides mortgage origination and related services such as title insurance and home insurance online in the United States and United Kingdom.{{Cite web | url=https://money.com/better-mortgage-mortgage-lenders-review/ | title=Better Mortgage Review | first=Andrea | last=Agostini Ferrer | work=Money | date=October 11, 2022}}
Better processes, underwrites and closes mortgages for lenders such as Citibank and American Express.{{Cite news | url=https://www.inman.com/2023/08/29/nearly-half-of-betters-mortgage-business-now-comes-from-partners/ | title=Nearly half of Better's mortgage business now comes from partners | first=MATT | last=CARTER | work=Bradley Inman | date=August 29, 2023 | url-access=registration}} Better sells mortgages to approximately 30 secondary mortgage market investors, including Fannie Mae and Wells Fargo. The company secures lead generation from personal finance companies such as American Express, Credit Karma, and NerdWallet.
History
In February 2014, Vishal Garg founded the company after he and his wife had a negative experience obtaining a mortgage to buy their first home.{{Cite news | title=Digital mortgage company Better.com closes $160 million in funding | last=Howley | first=Kathleen | url=https://www.housingwire.com/articles/49877-digital-mortgage-company-bettercom-closes-160-million-in-funding/ | work=HousingWire |date=2019-08-19}}
In 2016, the company launched Better Mortgage and was approved to be a Fannie Mae seller/servicer.{{Cite news | last1=Aryan | first1=Aashish | last2=Mukul | first2=Pranav | title=Explained: Better.com, the mortgage company that fired over 900 employees over Zoom call |url=https://indianexpress.com/article/explained/vishal-garg-better-dot-com-zoom-call-7660386/ | work=The Indian Express | date=December 7, 2021}}
In April 2019, the company partnered with Ally Financial to operate its mortgage platform.{{Cite press release | url=https://www.prnewswire.com/news-releases/ally-financial-partners-with-bettercom-to-create-end-to-end-digital-mortgage-experience-300834706.html | title=Ally Financial Partners with Better.com to Create End-to-End Digital Mortgage Experience | publisher=PR Newswire | date=April 18, 2019}} The number of people from traditionally underrepresented groups buying homes through Better's mortgage lending platform increased significantly in 2019, a development that The New York Times suggested was linked to the company's digital processes and minimal reliance on human brokers.{{cite news | url=https://www.nytimes.com/2020/09/18/business/digital-mortgages.html | last=Miller | first=Jennifer |title=Is an Algorithm Less Racist Than a Loan Officer? |work=The New York Times | date=September 18, 2020 | url-access=limited}}{{Cite news | last=Jeans | first=David | title=Mortgages, Fraud Claims And 'Dumb Dolphins': A Tangled Past Haunts Better.com CEO Vishal Garg | url=https://www.forbes.com/sites/davidjeans/2020/11/20/mortgages-fraud-claims-and-dumb-dolphins-a-tangled-past-haunts-bettercom-ceo-vishal-garg/ | work=Forbes | date=November 20, 2020 | url-access=limited}}
In July 2021, Better acquired Trussle, a UK digital mortgage broker, for $9 million (and is now in the process of selling it to another UK-based company).{{Cite news | last=de León | first=Riley |title=Digital mortgage lender Better acquiring Goldman Sachs-backed fintech ahead of public listing | url=https://www.cnbc.com/2021/07/12/digital-mortgage-lender-better-acquiring-goldman-sachs-backed-fintech.html | work=CNBC | date=July 12, 2021}} In September 2021, Better acquired Property Partner, a London-based crowdfunding platform.{{Cite news | last=Lawler | first=Ryan | title=Better.com acquires UK-based Property Partner ahead of SPAC close | url=https://techcrunch.com/2021/09/09/better-acquires-property-partner/ | work=TechCrunch | date=September 9, 2021}}
In May 2022, Harit Talwar was hired as chairperson.{{Cite news | last=Reyes | first=Max | title=Better Hires Ex-Goldman Partner Talwar With Eyes on Listing | work=Bloomberg News | url=https://www.bloomberg.com/news/articles/2022-05-09/better-hires-ex-goldman-marcus-head-talwar-with-eyes-on-listing | date=May 9, 2022 | url-access=subscription}}
In February 2023, the company announced a deal with Amazon whereby Amazon employees are able to pledge their stock as collateral for a loan to cover the down payment on a house purchase, albeit at a slightly higher interest rate.{{Cite news | url=https://www.wsj.com/articles/amazon-employees-will-be-able-to-use-stock-as-collateral-for-home-loans-183b6acc | title=Amazon Employees Will Be Able to Use Stock as Collateral for Home Loans | first=Dana | last=Mattioli | work=The Wall Street Journal | date=February 28, 2023 | url-access=subscription}}
In August 2023, the company became a public company via a merger with a special-purpose acquisition company that included an investment from SoftBank Vision Fund; shares plummeted immediately after the merger.{{Cite press release | url=https://www.businesswire.com/news/home/20230823015400/en/Better-Home-Finance-Announces-Closing-of-Business-Combination | title=Better Home & Finance Announces Closing of Business Combination | publisher=Business Wire | date=August 23, 2023}}{{Cite news | url=https://techcrunch.com/2023/08/27/better-com-had-a-miserable-com-public-debut/ | title=Better.com’s public market debut was Miserable.com | first1=Mary Ann | last1=Azevedo | first2=Christine | last2=Hall | work=TechCrunch | date=August 27, 2023}}{{cite news |title=After setbacks, Better goes public with plan to scale 'greater heights' |url=https://www.inman.com/2023/08/23/after-setbacks-better-goes-public-with-plan-to-scale-greater-heights/ | last=Carter |first=Matt | work=Bradley Inman |date=August 23, 2023 | url-access=registration}}
In June 2022, a former senior executive at Better filed a lawsuit alleging that the company misled investors in its filings. After an investigation by the U.S. Securities and Exchange Commission found no issues the Plaintiff voluntarily dismissed the case.{{Cite news | url=https://www.wsj.com/articles/sec-probes-better-com-after-lawsuit-alleges-company-misled-investors-11657832444 | title=SEC Probes Better.com After Lawsuit Alleges Company Misled Investors | first=Joseph | last=Pisani | work=The Wall Street Journal | date=July 14, 2022 | url-access=subscription}}{{cite news | last=Nunes | first=Flavia | title=Former top executive withdraws lawsuit against Better.com and its founder | url=https://www.housingwire.com/articles/former-top-executive-withdraws-lawsuit-against-better-com-and-its-founder/ | work=HousingWire |date=May 8, 2024}}
Controversies
=Employee Layoffs=
In December 2021, Garg laid off 900 employees by videoconference and locked their electronic devices from accessing company material.{{Cite news | last=Maruf | first=Ramishah | title=Better.com CEO fires 900 employees over Zoom | url=https://www.cnn.com/2021/12/05/business/better-ceo-fires-employees/index.html | work=CNN | date=December 5, 2021}}{{Cite news | title=Vishal Garg: US boss fires 900 employees over Zoom | url=https://www.bbc.com/news/business-59554585 | first=Beth | last=Timmins | work=BBC News | date=December 7, 2021}}{{cite news | title=CEO who fired hundreds on Zoom call say he's worked hard to be kinder | url=https://www.businessinsider.com/better-com-ceo-vishal-garg-fire-worker-zoom-kinder-empathetic-2023-8/ | first=Kwan Wei Kevin | last=Tan | work=Business Insider | date=August 24, 2023}}{{Cite news | last=Graziosi | first=Graig | date=December 6, 2021 | title=Who is Vishal Garg, the CEO that fired 900 employees over Zoom call? | url=https://www.independent.co.uk/news/world/americas/vishal-garg-better-ceo-fired-b1970887.html | work=The Independent | archive-url=https://web.archive.org/web/20211206204342/https://www.independent.co.uk/news/world/americas/vishal-garg-better-ceo-fired-b1970887.html | archive-date=December 6, 2021 | url-status=live}}{{cite news |url=https://www.forbes.com/sites/davidjeans/2023/08/25/better-mortgage-ceo-vishal-garg-spac/ |last=Jeans |first=David |title=Better.com CEO Who Fired 900 People On Zoom Is Struggling To Keep His Company Afloat |work=Forbes | url-access=limited}} Garg also made comments to employees that were deemed "unruly", telling employees that he "hired the wrong people" and referring to employees as "slow," "dumb," and "embarrassing".{{Cite news | title=Better.com's morale and SPAC merger success in question after CEO's unruly comments | url=https://fortune.com/2021/12/06/better-ceo-vishal-garg-lay-offs-spac-merger/ | first=JESSICA | last=MATHEWS | work=Fortune | date=December 6, 2021 | url-access=subscription}} After much criticism, Garg took approximately a month off, returning in January 2022.{{cite news | last=Goldberg | first=Emma | title=Better.com's C.E.O. is 'taking time off' after firing 900 workers over Zoom. | url=https://www.nytimes.com/2021/12/10/business/economy/better-ceo-zoom-firing.html | work=The New York Times | date=December 10, 2021 | url-access=limited}}{{cite news | last=Goldberg | first=Emma | title=Better.com's founder returns as C.E.O. after firing 900 workers on Zoom. | url=https://www.nytimes.com/2022/01/18/business/better-ceo-vishal-garg.html | work=The New York Times |date=January 18, 2022 | url-access=limited}}{{cite news | title=He's Baaaack! Ax-Wielding Better.com Founder Returns as CEO |url=https://www.thedailybeast.com/bettercom-founder-vishal-garg-returns-as-ceo-a-month-after-brutal-mass-firing |last=Kirsch |first=Noah |work=The Daily Beast | date=January 18, 2022}} The company was also criticized for adding 1,000 workers in India during the same year.{{cite news | last=Bhattacharya | first=Ananya | title=Did Better.com hire Indian techies only because they are cheaper? | url=https://qz.com/india/2129041/why-vishal-gargs-better-com-has-more-indian-techies-post-layoffs | work=Quartz (publication) |
date= February 16, 2022}}
On March 8, 2022, the company announced that an additional 3,000 people, or approximately one-third of employees, were laid off.{{cite news | last=Valinsky | first=Jordan | title=Better, after firing 900 employees over Zoom, is laying off 3,000 more workers | url=https://www.cnn.com/2022/03/08/business/better-mortgage-layoffs/index.html | work=CNN | date=March 8, 2022}}{{cite news | url=https://www.nytimes.com/2022/03/08/business/better-mortgage-lender-layoffs.html | last=Goldberg | first=Emma | title=Better.com, a mortgage lender and early pandemic winner, announces more layoffs. The company will let go more than 3,000 employees three months after gaining notoriety for firing 900 workers in a Zoom call. | work=The New York Times | date=March 8, 2022 | url-access=limited}} Some employees learned of their layoff when they received severance pay, before Better.com told them they were to be laid off.{{cite news | last=Azevedo | first=Mary Ann |title=Better.com employees learned of layoffs when severance checks appeared in payroll app | url=https://techcrunch.com/2022/03/08/better-com-employees-learned-of-layoffs-when-severance-checks-appeared-in-payroll-app/ |work=TechCrunch | date=March 8, 2022}}
The company instituted another round of layoffs in April 2023; in this round, affected employees received individual calls, a severance package that included a minimum of 60 days compensation, up to three months of health coverage through COBRA, and assistance in their job searches.{{Cite news | url=https://www.nytimes.com/2022/04/19/business/bettercom-announces-more-layoffs-citing-mortgage-market-turbulence.html | title=Better.com announces more layoffs, citing mortgage market turbulence. | first=Emma | last=Goldberg | work=The New York Times | date=April 19, 2022}}
In June 2022, three senior executives left the company.{{cite news | title=Better.com loses three more senior executives, including SVP and VP of sales | url=https://techcrunch.com/2022/06/21/better-com-loses-three-more-senior-executives-including-svp-and-vp-of-sales/ | last=Azevedo | first=Mary Ann | work=TechCrunch | date=June 21, 2022}}
In August 2022, a list of 250 or more US-based employees who were about to be terminated in another round of layoffs was leaked internally, leading to the termination of the employees who leaked the information.{{Cite news | title=Better.com conducts fourth layoff in less than 9 months | url=https://techcrunch.com/2022/08/25/better-com-layoffs-digital-mortgage/ | first=Mary Ann | last=Azevedo | work=TechCrunch | date=August 25, 2022}} The company was accused of circumventing the Worker Adjustment and Retraining Notification Act of 1988 by laying people off in groups of 249 employees, under the 250 minimum that triggers the act.{{Cite news | url=https://techcrunch.com/2022/09/28/better-com-employees-detail-their-experiences/ | title=Inside the human cost of Better.com’s brutal layoffs | first1=Mary Ann | last1=Azevedo | first2=Christine | last2=Hall | work=TechCrunch | date=September 28, 2022}}
In June 2023, more employees were laid off, bringing total layoffs since 2021 to 4,000. The in-house real estate broker team was eliminated.{{cite news |url=https://www.livemint.com/companies/news/bettercom-ceo-vishal-garg-announces-fresh-round-of-layoffs-shut-down-real-estate-unit-11686398886154.html |title=Better.com CEO Vishal Garg announces fresh round of layoffs |work=Mint |date=June 10, 2023}}{{Cite news | url=https://techcrunch.com/2023/06/09/better-com-lays-off-real-estate-team-and-shutters-business-unit/ | title=Better.com lays off real estate team and shutters business unit | first=Mary Ann | last=Azevedo | work=TechCrunch | date=June 9, 2023}}{{Cite news | url=https://www.inman.com/2023/06/08/better-com-lays-off-in-house-real-estate-agents-nationwide/ | title=Better.com lays off in-house real estate agents nationwide | first=MATT | last=CARTER | work=Bradley Inman | date=June 8, 2023 | url-access=registration}} The company had 150 agents as of 2021 and received 20% of agents' commissions in exchange for lead generation.{{Cite news | url=https://therealdeal.com/national/2023/06/08/another-round-of-better-com-layoffs-hits-in-house-agents/ | title=Another round of Better.com layoffs hits in-house agents | work=The Real Deal | date=June 8, 2023 | url-access=limited}}
Awards and recognition
The company has received the following awards and recognition:
- Ranked 1st on the Top Startups List for 2021 and 2020 by LinkedIn{{Cite web | url=https://www.linkedin.com/pulse/linkedin-top-startups-2020-50-us-companies-rise-jessi-hempel/ | title=LinkedIn Top Startups 2020: The 50 U.S. companies on the rise. | first=Jessi | last=Hempel | work=LinkedIn | date=September 22, 2020}}
- Ranked 1st on the list of Best Small and Medium Workplaces in New York by Fortune
- Ranked 15th on the Disruptor 50 2020 list by CNBC{{Cite web | url=https://www.cnbc.com/2020/06/16/better-disruptor-50.html | title=15. Better.com | work=CNBC | date=June 16, 2020}}
- Listed on the FinTech 50 for 2020 by Forbes{{Cite web | url=https://www.forbes.com/companies/better-mortgage/ | title=Better Mortgage | work=Forbes}}
- Recipient of the 2025 Digital Mortgage Innovation Award by the Fintech Breakthrough Awards{{cite web |title=Meet the FinTech Breakthrough Award Winners |url=https://fintechbreakthrough.com/2025-winners/ |website=Fintech Breakthrough Awards |publisher=Fintech Breakthrough Awards}}
References
{{Reflist}}
External links
- {{Official website|https://better.com/}}
Category:2014 establishments in New York City
Category:2023 mergers and acquisitions
Category:American companies established in 2014
Category:Companies based in New York City
Category:Companies listed on the Nasdaq
Category:Online financial services companies of the United States
Category:Real estate companies established in 2014
Category:Real estate services companies of the United States